Assessment of Supply Chain risks and risk mitigation practices: the case of Heineken brewery Kilinto site
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Date
2020-01
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Addis Ababa University
Abstract
This study investigates the different supply chain risks and their mitigation practices. The aim
of the study was to assess those supply chain risks and the different mitigation practices of
Heineken brewery Kilinto site. The conceptual framework was designed by adopting both
major supply chain risks and mitigation practices which are developed by prominent
researchers. To achieve the objective of the study, four research questions were formulated. A
descriptive research design with mixed (quantitative and qualitative) research approaches was
applied to conduct the study. The supply chain risks questionnaire was adopted from Wagner
and Bode (2008) and mitigation practices questionnaire was adopted from Omondi Adem
(2014). Cronbach alpha was tested, so as to check the reliability and internal consistency of
the questionnaire. Furthermore, pilot test and preliminary interviews was conducted before the
distribution of the questionnaires. The data were obtained by an interview and survey
questionnaires consisted of 39 statements with five point Likert scale. The study took 110
samples with response rate of 92 respondents. The data were analyzed using SPSS (version
20). Descriptive statistics were used to analyze the data and interpret results. The findings of
the study revealed that, even though their extent varies, the factory has experienced risks in its
supply chain which are associated with demand side, supply side, bureaucratic, infrastructure
and catastrophic risks. Furthermore, the factory has adopted practices to mitigate those risks
to a varying extent. Particularly, the practices of developing supply chain contingency plans
were the most common mitigation practices which are adopted by the site to a large extent.
While, the practices of Developing backup supplier arrangement was implemented to a small
extent. On the other hand, installation of advanced software’s that increase visibility, and
forecasting errors which increases the effect of demand side risks with high volatility and
distorted information were the challenges that site have faced while implementing the supply
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chain risk mitigation practices. Finally, based on the findings of the study, HBKS were
forwarded with better ways of improving its practices of supply chain risk mitigation.
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Keywords
Supply chain risks, Supply chain risk mitigation practices, investigates the different supply chain risks